Bank of Baroda (BoB) reported a net profit of Rs 1,061.11 crore in Q3 FY21 compared with net loss of Rs 1,406.96 crore in Q3 FY20.
Total income during the quarter decreased by 5.2% year-on-year (YoY) to Rs 20,664.23 crore. The bank reported a pre-tax profit of Rs 1,633.96 crore in Q3 December 2020 as against pre-tax loss of Rs 2,196.96 crore in the same period last year. It made a provision of Rs 572.85 crore during the quarter for taxes.
Net interest income improved 8.65% to Rs 7,749 crore in Q3 December 2020 from Rs 7,132 crore in Q3 December 2019. Operating profit in the third quarter stood at Rs 5,591 crore, up by 12.77% from Rs 4,958 crore in the same period last year.
Provisions and contingencies declined by 44.7% to Rs 3,956.68 crore in Q3 December 2020 from Rs 7,155.42 crore in Q3 December 2019.
The bank holds provisions of Rs 1709.35 crore as on 31 December 2020 towards the potential impact of COVID-19. The provisions held by the bank are in excess of the RBI prescribed norms.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 63,181.55 crore as on 31 December 2020 as against Rs 65,698.01 crore as on 30 September 2020 and Rs 73,139.70 crore as on 31 December 2019.
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The ratio of gross NPAs to gross advances stood at 8.48% as on 31 December 2020 as against 9.14% as on 30 September 2020 and 10.43% as on 31 December 2019. The ratio of net NPAs to net advances stood at 2.39% as on 31 December 2020 as against 2.51% as on 30 September 2020 and 4.05% as on 31 December 2019.
Pending disposal of the case in SC, the bank as a matter of prudence has made a contingent provision of Rs 1521.56 crore. Further, interest income aggregating to Rs 369.93 crore has been reckoned in operating profit and as prudent measure an equal amount has been provided for. Total provision as on 31 December 2020 is Rs 1891.49 crore. If the bank would have classified the said borrower accounts as NPA, the Gross and Net NPA ratio would have been 9.63% and 3.36% respectively.
Global advances as of 31 December 2020 were Rs 7,45,420 crore, an increase of 6.3% over 31 December 2019. Total deposits as of 31 December 2020 were Rs 9,54,561 crore, an increase of 6.52% over 31 December 2019.
CASA deposits grew by 13.21% to Rs 3,43,937 crore in Q3 December 2020 from Rs 3,03,795 crore in Q3 December 2019. CASA ratio improved by 240bps YoY to 41.20% in Q3 FY21.
Capital adequacy (CRAR) stood at 12.93% with CET-1 at 8.98% on a standalone basis.
Bank of Baroda is an Indian state-owned banking and financial services organization. The bank has a domestic presence spanning 8,246 branches and 11,553 ATMs and cash recyclers supported by self-service channels. It has a significant international presence with a network of 99 overseas offices spanning 20 countries.
Shares of BoB slumped 11.78% to Rs 65.15. It traded in the range of 64.55 and 72.80 so far during the day.
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